**ADJUSTERS EXAM**

Homeowners Section I - deductible

$500 standard deductible on all Section I - Property Losses

48 hours

- A Commercial Property Policy includes a protective safeguard endorsement indicating there are protective safeguards installed in the risk such as a sprinkler system. Should the system become inoperative, how long does the insured have to report this fact to the insurer?

$100,000 of coverage for the building

- A commercial building in Iowa that is located in a community that was admitted to the NFIP Emergency Program would be provided

within 60 days of the loss

- An NFIP policy requires that the proof of loss be submitted within

personal property floater

- additional property insurance that covers the damage or loss of a specific item of high value - covers personal property on a blanket bases by category. Coverage is written on an "all risk" basis. ***Golf carts are not covered under this policy.***

NFIP National Flood Insurance Program

- may be purchased for a one-year period - normal waiting period for coverage is 30 days

Liberalization Clause

-A policy condition providing that if a policy form is broadened at no additional premium, the broadened coverage automatically applies to all existing policies of the same type.

Mortgage Clause

-Mortgagee is entitled to its insurable interest in the property regardless of any policy violation by the insured -acknowledges the insurable interest of the mortgagee by agreeing to notify the mortgagee 10 days before* cancellation or non renewal takes effect.

Occurrence

-accident, including continuous or repeated exposure to conditions

Duties after a loss

1. Give prompt notice 2. Protect the property 3. Prepare an inventory of damaged personal property 4. Exhibit the damaged property 5. File a proof of loss *within 60 days* after the insurer's request

-Coverage under the livestock coverage form may be written on either a blanket or scheduled basis. When coverage is blanketed, a limit of liability is indicated for each applicable livestock class such as cattle, sheep, swine, goats, horses, mules or donkeys. A per animal limit is assigned. This coverage is subject to a/an ____ coinsurance clause

80% coinsurance clause

Both policies provide excess amount of insurance, but an Umbrella policy can also broaden the coverage

A distinguishing difference between Umbrella policies and Excess policies is:

Garage Liability coverage

A franchised auto dealership would need:

public adjuster

A person, firm, or corporation that, for compensation, acts on behalf of an insured in negotiating the settlement of certain claims for loss or damage to property is known as a/an:

Which of the following is not "mobile equipment" under the business auto policy?

A self-propelled vehicle with permanently attached street-cleaning equipment..

Amounts owned to the insured but left uncollected because of billing errors

Accounts receivable insurance will not pay:

Coverage F

Additional Living Expenses (20% of coverage A) -Will pay additional living expenses incurred by the insured while the property is unfit for use (such as rent for alternative housing, meals out, laundry, etc.)

An unfair claims practice

An insured has a $1,000 claim and is able to prove his loss and its value. The adjuster offers $500 knowing that the claimant would probably take the amount because of incurring the cost of an attorney. This is considered

24 months

An insured may file a suit to recover for a loss only if all policy requirements have been complied with, and only if the suit is filed within ______ months of the date of loss.

Material Misrepresentation

Any misinformation provided by an applicant which is such that the insurance company would not have issued a policy if the true facts were known is:

interline endorsements

Apply to more than one coverage part of the package policy

Risk Reduction

Brianna owns a large Flea Market and she rents space to many different vendors. Brianna requires each vendor to carry liability insurance in case someone is injured in their rented space. Brianna is practicing:

30 days

Business owners policies provide "Preservation of Property" coverage when property is removed from the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up to:

Express Waiver

Carlos is applying for a Personal Automobile policy with his agent. Currently, he only wants to get a minimal amount of coverage to keep his premiums as low as possible, so he decides not to include uninsured motorist coverage on his policy. His agent has him sign a document giving up his right to this coverage. What is this called?

I. A single Declarations page common to all coverages. II. A single Conditions section common to all coverages.

Commercial Package Policy (CPP) always includes

scheduled personal property endorsement (with agreed value loss settlement)

Coverage E under the farm forms covers which of the following?

Trailer Interchange insurance

Covers physical damage to a non-owned trailer when the trucker is liable under a written interchange agreement.

Coverage A

Dwelling Building; coverage is provided on the dwelling as described in the declarations section of the dwelling policy as well as any structure attached to the dwelling (such as a garage)

DP-1

Dwelling basic policy, covers fire, lightning, explosion; pays on an actual cash basis

14 days

Except in the case of catastrophic losses, the insurer must initiate loss adjustment of a property damage claim and a claim for reasonable medical expenses within _____ days after notification of loss by the claimant.

Coverage D

Fair Rental Value (20% of Coverage A) -Pays Landlord for damages due to covered peril -Pays for loss in rents landlord would have collected -Payment will be for the *shortest time required* to repair or replace that part of the described location rented or held for rental. -Coverage for fair rental value loss for *up to two weeks*

Per Occurrence Limit

General liability policies have basically two limits. One is the aggregate limit and the other is the:

Coverage A

Homeowners - Dwelling - covers dwelling, structures attached to dwelling, materials and supplies for use in the construction or repair of the dwelling or other structures at the location, and building or outdoor equipment used to service the premises Full replacement cost as long as the insured carries 80% of the replacement cost value. The insured selects a limit for coverage A. The minimum amount is subject to each individual company's underwriting rules.

Coverage D

Homeowners - Loss of Use - covers losses incurred as a result of your home being uninhabitable. Such as rent, food and laundry. 30% of coverage A on HO-2, HO-3 and HO-5' 30% of coverage C on HO-4; 50% of coverage C on HO-6; and 10% of coverage A on HO-8.

Coverage F

Homeowners - Medical Payments to Others - "good will" coverage that pays the medical bills incurred by others in an accident, regardless of the fault or liability of the insured. - The minimum limit is **$1,000 per person per occurrence.** - will pay for the following as long as they are claimed within **three years** of the date of the accident, and the loss occurs to a guest, other individuals (not any insured), or to residence employees while they are working and are not covered by workers compensation coverage: Medical and surgical care X-rays Dental services Ambulance, hospital and professional services Funeral services

Coverage B

Homeowners - Other Structures -10% of coverage A for one or two family dwellings and 5% for three or four family dwelling

Coverage E

Homeowners - Personal Liability -pays on behalf of the insured all sums he or she is legally obligated to pay others because of bodily injury or property damage to others, caused by an "occurrence." -The standard minimum is $100,000 per occurrence**

Coverage C

Homeowners - Personal Property - covers personal property owned or used by the insured. - 50% of coverage A for one or two family dwellings and 30% for three or four family dwellings

H0-1

Homeowners Basic Form; named peril form

H0-2

Homeowners Broad Form; named peril form

H0-8

Homeowners Modified Coverage - this form provides very basic peril coverage and was designed to cover dwellings in which the "replacement cost value" is much greater than "market value." Coverage for both buildings and contents are considered on an actual cash value basis.

H0-4

Homeowners Personal Property (contents) broad form -this form (tenants form) is designed to cover the contents of the tenant living in a non-owned structure. This could be an apartment or a dwelling. Since the tenant does not own the structure the form does not provide coverage except for the improvements and betterments that the tenant may have made to the structure at his or her expense. This form provides the named "broad perils."

H0-6

Homeowners Unit-owner broad form -this form (condo form) is designed for the condominium owner. It covers the structural portion of the condo owned by the insured as well as his or her contents plus any improvements and betterments. Like the HO-4 form, property is covered by the "broad perils."

H0-3

Homeowners special form; most frequently used form to cover single-family dwellings. Combination of broad perils listed and the open perils approach.

45 days

How many days does the liberalization clause provide for under the ISO standard BOP policy form prior to, or during the policy period?

Notify the police immediately

If a vehicle has been stolen, which of the following steps is the insured immediately required to take according to the conditions clause in the personal auto policy?

Yes, both can be held liable for job-related injuries to any employee of the subcontractor

If an independent contractor subcontracts any part of a job to a subcontractor, can the independent contractor be held liable for a job-related injury of an employee of the subcontractor?

estoppel

If an insurance company covers an excluded claim, it may have to continue paying other such claims because of:

60 day

If an insurer intends to non-renew a commercial policy in Louisiana a _____ day notice of non-renewal is required.

30 days/10 days

If loss is made payable to a designated mortgagee other than the insured, that interest in the policy may be cancelled by giving the mortgagee _____ days written notice of cancellation, or _____ days written notice if cancellation is for nonpayment of premium.

The Louisiana Automobile Insurance Plan

If one cannot obtain auto insurance in the standard insurance markets in Louisiana, where might they seek coverage?

within 30 days

If the Commissioner of Insurance denies an application or refuses to renew a license, he shall notify the applicant or licensee, in writing, of the reason for the denial or nonrenewal. The applicant or licensee may make written demand upon the Commissioner of Insurance within ________ days

10 days

If the insurer cancels, it must give the insured at least ____ days written notice when the reason is nonpayment of premium, and at least 30 days notice in all other cases. The Standard Fire Policy required five days notice for all cancellations.

30 days

In the case of a catastrophic loss, the insurer must initiate loss adjustment within ____ days of receipt of the claim by the claimant.

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Mobile Equipment Subject to Compulsory or Financial Responsibility

Damage to or loss of another ship caused by a negligent collision

Ocean marine protection and indemnity (P&I) coverage usually insures the ship owner against liability for all of the following EXCEPT:

Coverage B

Other Structures (10% of Coverage A)

not more than $1000/ aggregate penalty of $100,000/ not more than $25,000/ aggregate penalty of $250,000

Payment of a monetary penalty of not more than $________ for each and every act or violation, but not to exceed an aggregate penalty of $_______ unless the person knew or reasonably should have known he was in violation.If the person knew or should have known he or she was in violation, the penalty shall be not more than $_______ for each and every act or violation, but not to exceed an aggregate penalty of $_______ in any six-month period.

Personal Articles Floater

Personal Inland Marine insurance which provides ***all-risk coverage*** on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.

Coverage C

Personal Property (50% of Coverage A)

Personal Effects Floater

Provides "all risk" coverage for individuals and families who desire to insure their personal belongings (baggage) while traveling or vacationing.

No Release or Walk-Away

The bills are paid and no attempt to obtain a separate release is made. .

For each separate accident

The limit of liability for business auto coverage may be paid:

Negotiated settlement

The most common method of settling liability insurance claims is through:

Only a portion of a partial loss will be paid..

The penalty for failure to satisfy a coinsurance requirement of a property insurance policy is:

Costs to recall products that may be defective

Under a CGL policy, "your product" does not include

The form provides 20% of Coverage A for additional living expense under the DP-2 and DP-3. Therefore, $75,000 X 20% = $15,000. This amount divided by 12 months = $1,250/month.

Under a DP-2 or DP-3 standardized policy what is the maximum that would be paid for one month for additional living expenses if Coverage A was $75,000?

Within 30-days of receiving a satisfactory proof of loss

When must an insurer make a written offer to settle a property damage claim?

The Dwelling policy provides higher limits of liability than the Homeowners policy..

Which of the following is NOT a reason to purchase a Dwelling policy instead of a Homeowners policy?

Completed operations

coverage applies when the work has been completed and put to its intended use. The faulty roof would not be covered, but the water damage to the personal property (contents) caused by the faulty roof, would be covered.

Only in eligible communities

coverage under the National Flood insurance program may be written only in...

DP-2

dwelling property broad form - named peril. coverage A, B, C, D plus others. replacement costs for coverage A & B with 80% insurance coverage.

DP-3

dwelling property special form - open peril. all risks of physical loss except those specifically excluded. Coverage A & B for open peril and Coverage C (personal property coverage) for named perils.

2 years

every licensed claims adjuster shall file an application for renewal of his license every ______

24 hours

how many hours of continuing education is required for someone who holds an adjusters license?

general property flood form

is for commercial buildings, co-ops, residential condos in the emergency program and timeshare buildings not in a condo style. But in each case, losses are settled on an actual cash value (ACV) basis only.

because other property policies routinely excluded flood coverage

it was necessary to create a federal flood insurance program because...

Misrepresentation

leading a client to believe that an insurance policy provides coverage that it does not provide is an example of what?

Poultry

not eligible under the generic livestock form and would require a special endorsement to be covered.

Debris removal coverage

now extends to $5,000** to clean up debris of others on the insured premises even if the insured property has not been damaged.

full release settlement

paid immediately, in one lump sum

Homeowners - Loss Assessment

pays up to $1000 when the insured is assessed by a corp. or property owner's association for damage to property owned collectively if damaged by a peril insured against under the insured's policy.

Fire Department Service Charge

pays up to $500 for service call to fire department

An NFIP Dwelling policy under the regular program

required to include the Increased Cost of Compliance (ICC) coverage

4 year

the Commissioner of Insurance is elected by the people to a ______year term

within 30 days

the adjuster shall report to the commissioner of insurance any administrative action taken against the adjuster in any jurisdiction or another governmental agency within ______ of the financial disposition of the matter.

$500/$10,000

the commissioner of insurance may place on probation, suspend, revoke, or refuse to issue, renew, or reinstate a claims adjuster's license or may levy a fine not to exceed $_______ for each violation or up to $_________ aggregate for all violations in a calendar year

30 days / $50.00 fine

the licensee must inform the commissioner of insurance by any means acceptable to the commissioner of insurance of a change of address, change of telephone number, change of legal name, or change o info submitted on the application within ____ days of the change. Failure to file a change within the required time shall subject the licensee to a $____ per violation fine

pro rata refund

the unused premium (based on the pro rata portion of the premium for the number of days remaining in the policy) returned to the insured when a policy is canceled

not exceeding $250 / 10 or more days / not to exceed $5,000

the use by any insurance producer of a nonapproved trade name shall subject such person to a fine not to exceed ________. Additionally, if the insurance producer continues to utilize a nonapproved trade name for ______ after being notified by the commissioner to cease using the non approved trade name, the insurance producer will be subject to an additional fine not to exceed ______